Let's talk about the facts instead of rumour and innuendo. Vic's fund was up close to 50% a year over the last 3 years. He is currently, as of the date of the article, down 12% on the year. This is absolutely stellar performance for any money manager. He has superior money management systems in place and trades a variety of styles. Yes, he had a poor month--- however, what better time to increase the risk, than when one is up huge---30plus % for the year? Those who don't understand, or simply refuse to understand the nature of risk taking continually neglect the fact-- that risk is increased and decreased based on a variety of factors---one being prior performance--- superior prior performance allows one to increase risk, whereas inferior performance forces one to pull back and play it safe. Niederhoffer is far from finished. In fact, the game has just begun. best, surf
He is borrowing 500% to 600% of capital and makes 50% on it. So without borrowing money he is making 10% a year selling options. How do I get 500% leverage to sell options?
Vic is a crackerhead. If i applied for a job there and was told "No talking and NO air conditioner" I would very politely get up from the chair, flash him the bird and smartly exit the premises. The guy is an egotistical fruit. :eek:
when he was starting up after his blow up in the late 90s i sent him a resume; he sent me an autographed copy of education of a speculator.
He's a sharp person and very eccentric. I think he has lost his touch (meaning his judgement is faulty) I have no idea why people would be so concerned. Every year, a significant number of fund managers lose their jobs for lack of performance, for inconsistent performance, or for using a style of money management that exposes the fund to excessive volatility. The difference is that they don't hire publicists and write books about it. You have to give the guy a little credit. After all that he still found a way to get people to give him more money (a lot of money) to fritter away. If you think about it for a minute, the guy is a real genius.
For those who don't know, Markersurfer is one of VN's most persistent acolytes. He is quite a multi-tasker, too, defending the man in TWO separate threads. On another note, I was very impressed to read that VN actually made financial restitution to those hurt by his late 90's collapse. It shows that the guy has some integrity. I am sure that those who are investing with Dr. Niederhoffer know about his propensity for risk and are OK with it. It's their money. But I'd bet that none of them have all their money with him. Now that I think about it, a 80% Treasuries--20% Victor portfolio might be a market beater, over time, and with less vol than the S&P.